HMRC is empowered to assess tax within boundaries specified by Parliament. It needs to tackle failed tax avoidance, within those legislative limits. R Atherton v HMRC [2019] UKUT 41 (TCC) explores those limits in terms of when HMRC makes a valid discovery, despite reaching a similar conclusion some years previously. The taxpayer was careless, despite considering options presented by his accountant. Identifying who made specific decisions, understanding the extent of their tax knowledge and on whose advice they acted are key to whether discovery assessments may be issued using extended time limits and whether error penalties are due.
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HMRC is empowered to assess tax within boundaries specified by Parliament. It needs to tackle failed tax avoidance, within those legislative limits. R Atherton v HMRC [2019] UKUT 41 (TCC) explores those limits in terms of when HMRC makes a valid discovery, despite reaching a similar conclusion some years previously. The taxpayer was careless, despite considering options presented by his accountant. Identifying who made specific decisions, understanding the extent of their tax knowledge and on whose advice they acted are key to whether discovery assessments may be issued using extended time limits and whether error penalties are due.
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